Barista FIRE
Semi-retirement where part-time work covers some expenses (and often health insurance), so your portfolio doesn't carry the full load yet.
Barista FIRE describes a halfway state between full-time work and full retirement. You've saved enough to step back from a demanding career, but you take on part-time or lower-stress work that covers a portion of your expenses — the name nods to part-time roles that historically offered health benefits.
The appeal is twofold. The part-time income means your portfolio doesn't have to fund 100% of your spending, so it can keep growing or face smaller withdrawals in the early, most vulnerable years. And the job may provide health insurance, which bridges one of the hardest gaps in early retirement: coverage before Medicare eligibility at 65.
Barista FIRE changes the tax and benefits picture, because earned income affects ACA subsidies, Social Security calculations, and your ability to contribute to certain accounts. Modeling the part-time income explicitly, rather than treating retirement as a hard stop, gives a much more realistic plan.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.